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How to evaluate your employees as a business manager

Doing a routine evaluation of your employees will impact the overall outlook of your business. Many businesses rely on their employees to be the "face" of the company. After all, the employees are the ones who interact with the customers on a day to day basis. When you hire an employee, you should always lay out certain "ground rules" that pertain to performance standards, goals and performance appraisal.

By doing a yearly or semi-yearly employee evaluation, you can see areas of strength and weakness of each employee. You are given the chance to discuss one on one with that employee about how they feel about their job and what their goals are within the company. This can help you forecast your business plan if an employee shows interest in growing within the organization.

To start your employee evaluation, take a look at the following 3 tips:

Performance standards.
Performance standards discuss what you want accomplished in a particular job and how you want your employee's to go about following that job. The performance standards you set should be applied to every employee who holds each particular job. Having performance standards in place will help the employee know what they need to live up to in their job in order to be considered for raises. Below are a few performance standards used by numerous organizations that you can follow. The performance standards should be:

  • included in the job description

  • - based on the position, not the present or former incumbent

  • - reasonable, measurable and specific

  • - subject to change as the position evolves

Of course these standards should be modified to your company and even revised from feedback of your employees. Newly created positions should have a feedback letter attached so you can judge how to improve on the employee evaluations.

Goals are a little different from performance standards. You will need to evaluate each employee and their past performance. Then you should tailor the goals to each employee. Look at ways you can help make their job more efficient, like purchasing new software or implementing safety standards. Discussing the needs employees see will help you both decide what is reasonable.

Performance Appraisal
The employee performance appraisal helps to identify, evaluate, and develop and individual's performance. It is a motivation tool that encourages employees to have high performance levels. Some great benefits that come from performance appraisal are listed below:

  • Validations of hiring practices - are the right people in the right positions?

  • - provision of an objective measuring tool on which compensation decisions, and promotions can be based

  • - identification of training needs - individually, departmentally and organizationally

  • - identification of employees who have the potential for advancement or who might be better suited in other areas of the organization

By doing employee evaluations, you are setting certain standards for the company and the employees such as:

  • Expectations for employees and company. Regular feedback obtained from both.

  • - Reward good work; and discuss shortfalls in performance.

  • - Open communication to discuss employee performance and keeps the needs of the workforce in check.

You will find that employee evaluations are a great time to address problems and find solutions for them. Having documentation of issues that have arisen with employees will help keep your company out of legal battles if that employee leaves the company on bad terms. Having that written proof before the employee leaves, goes a long way in court.

Employee evaluations are an effective tool in business management. Your employees will get a chance to speak their opinion to you in a comfortable setting instead of in front of their coworkers. This will help establish trust between you and your employees as you show empathy and a desire to help the employee succeed at the company.

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